How eBay has sent the Digital Wine (ASX:DW8) share price up 50%

The Digital Wine (ASX: DW8) share price has surged 50% today after news the company intends to partner with online giant eBay.

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Digital Wine Venture Limited (ASX: DW8) share price is through the roof today, after news the company intends to partner with eBay.

The online beverage distributor has signed a memorandum of understanding (MOU) with online shopping giant eBay to partner with Digital Wine Venture's WINEDEPOT.

At the time of writing, the Digital Wine share price is up 50%, trading at 16.5 cents.

Let's look further into the potential eBay partnership.

Two happy people use their hands as binoculars, indicating a positive ASX share price or on watch

Image source: Getty Images

WINEDEPOT and eBay

Under the MoU, eBay and WINEDEPOT will negotiate the terms of a partnership in which Australian wineries would be able to sell their products on eBay without an account of their own.

Instead, WINEDEPOT's trading platform, DIRECT, would enable wineries to list products on a range of channels, including eBay. WINEDEPOT would then pick, pack, and deliver wine orders made on eBay to customers.

Digital Wine Venture said this would allow eBay's 12 million monthly visitors to purchase from multiple wineries at the same time and take advantage of WINEDEPOT's same and next day deliveries in selected locations.

Commentary from management

Digital Wine CEO Dean Taylor says he was confident a partnership with eBay would help local producers generate more sales. He also mentioned that, in time, the partnership could benefit international wine lovers as WINEDEPOT looks to begin overseas delivery.

eBay Australia's managing director Tim MacKinnon also commented on the MoU:

We know bushfires and COVID border closures along with limited venue capacities have left countless Australian businesses doing it tough.

eBay exists to create economic opportunity, which is why we're excited to partner with WINEDEPOT, enabling local wine producers – many of which are located in regional areas – to scale their online offering and giving their local regions a much-needed economic boost.

Digital Wine share price snapshot

The online beverage distributer's share price opened at just 11.5 cents this morning; it is currently trading at 16.5 cents.

The Digital Wine share price has had a great year on the ASX, up 312% year to date and up 1,550% over the last 12 months.

The company has a market capitalisation of around $182 million, with approximately 1.6 billion shares outstanding.

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Gainers

Small chocolate bunnies.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a rough end to the short trading week.

Read more »

Man drawing an upward line on a bar graph symbolising a rising share price.
Share Gainers

Why Greatland Resources, Newmont, Northern Star, and Qantas shares are rising today

These shares are ending the shortened week on a high.

Read more »

A panel of four judges hold up cards all showing the perfect score of ten out of ten
Share Gainers

Here are the top 10 ASX 200 shares today

It was a veritable party on the ASX today.

Read more »

Excited couple celebrating success while looking at smartphone.
Share Gainers

Why Arafura Rare Earths, Eagers Automotive, Life360, and Pro Medicus shares are racing higher today

These shares are having a good session on hump day. But why?

Read more »

a man wearing old fashioned aviator cap and goggles emerges from the top of a cannon pointed towards the sky. He is holding a phone and taking a selfie.
Energy Shares

Guess which ASX 300 uranium stock is rocketing today on a 'fantastic milestone'

Investors are piling into this ASX 300 uranium stock on Wednesday. But why?

Read more »

A bland looking man in a brown suit opens his jacket to reveal a red and gold superhero dollar symbol on his chest.
Share Gainers

These were the best-performing ASX 200 shares in March

Here are the best-performing shares from the ASX 200 index last month.

Read more »

Multi-ethnic people looking at a camera in a public place and screaming, shouting, and feeling overjoyed.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a volatile but positive Tuesday.

Read more »

Two happy and excited friends in euphoria holding a smartphone, after winning in a bet.
Share Gainers

Why Challenger, Magellan, Northern Star, and West African Resources shares are storming higher

These shares are ending the month on a positive note. But why?

Read more »